Libor Fixing Scandal: RBS Faces £500m Fine

The Royal Bank of Scotland is facing a fine of up to half a billion pounds from US and UK authorities over its role in the manipulation of Libor, according to media reports.

Citing unnamed sources, the reports suggest RBS, which is 83 percent owned by the British taxpayer, could settle with regulators by next week and will face a fine of between £400m to £500m ($802m, €602m) split between US and UK authorities.

RBS is also reportedly set to announce the departure of its head of investment banking, John Hourican, and head of markets Peter Nielsen when the settlement is announced.

The bank apparently hopes the "matter is dealt with" by the time it publishes its full year results by the end of February.

RBS will become the third bank to settle with US and UK regulators over its involvement in the manipulation of Libor, the key interbank lending rate which is primarily used to price trillions of dollars of financial instruments.